First Quarter Economy Reaches 5.61%, Purbaya: Public Purchasing Power Remains Strong

Finance Minister Purbaya Yudhi Sadewa stated that the national economy’s growth of 5.61% in the first quarter of 2026 demonstrates that public purchasing power remains well-maintained. “The biggest contributor to economic growth is household consumption. This shows that public purchasing power remains strong and is growing significantly,” said Purbaya in his statement, quoted on Friday, 15 May 2026. He explained that understanding the structure of economic growth needs to be viewed based on the contribution of each component to the Gross Domestic Product (GDP). “The contribution to growth is calculated from the growth of each component multiplied by its share in the economy. From that calculation, household consumption becomes the main pillar of national economic growth,” he said. Household consumption became the main contributor to economic growth with a contribution of 2.94%. According to the Central Statistics Agency (BPS), the performance of household consumption was mainly driven by increased population mobility during national holidays and major religious events such as Nyepi and Eid al-Fitr. In addition, various inflation control policies and government stimuli also boosted consumption, including transport ticket discounts, the provision of THR or 14th-month salary, and the setting of the BI rate at 4.75%. Besides household consumption, Gross Fixed Capital Formation (PMTB) or investment contributed 1.79% to economic growth. This figure was driven by government investment, including construction related to national priorities, and private investment. On the other hand, government expenditure contributed 1.26% to the first quarter growth performance, with a growth of 21.81%. Purbaya conveyed that the government spending growth at the beginning of the year is part of the strategy to accelerate state expenditure, so that the economic impact can be felt more evenly throughout the year. “The government spending pattern, which previously tended to be concentrated at the end of the year, is now directed to be realised earlier so that it can support economic activities more optimally,” he said.